Indian venture debt firm InnoVen Capital invests $4.9m in logistics startup Xpressbees

Ashish Sharma, CEO, InnoVen Capital India

InnoVen Capital, which provides loans to startups, has invested ₹35 crore in e-commerce logistics provider Xpressbees, marking its fifth deal in 2019. The venture debt firm has now invested about ₹75 crore this year across five companies, and has four-five more deals planned for the next couple of months, chief executive Ashish Sharma said over the phone.

Xpressbees (Busybees Logistics Solutions Pvt. Ltd), founded by Amitava Saha and Supam Maheshwari, is an end-to-end e-commerce-focused logistics provider. Its services include first and last-mile delivery and reverse logistics with facilities, such as real-time tracking, multiple payment collection and processing options. It claims to serve more than 10,000 pin codes across India, with 53 hubs and about 1,300 service centres.

Its clients include online retailers such as Snapdeal, Paytm and Flipkart. Till date, Xpressbees has raised close to $56 million in equity from Alibaba Group Holding Ltd and Paytm (One97 Communications Ltd), as well as venture capital funds such as SAIF Partners and Chiratae Ventures.

“Logistics is a large market covering many aspects of the supply chain…and this is not a winner-takes-all model,” said Sharma. “There will be many players that will thrive in this sector, though we believe that there’ll be a pervasive shift from unorganized players to larger, well-funded organised players,” he said.

The funds will primarily be used for the expansion of the existing network and creation of new business lines, co-founder and CEO Saha said.

Xpressbees, spun out of the logistics arm of child-care retailer FirstCry, raised $35 million from Alibaba in its last round of funding, in January last year.

Saha declined to comment on its current fundraising plans.

InnoVen’s investments have been growing by about 25% year-on-year, with ₹600 crore deployed in 2018, 28% over the previous year. In 2017, it said that it had invested $75 million, 25% higher than the previous year. Its investments over the years include online pharmacy 1mg, two-wheeler rental startup Bounce, and food delivery firm Swiggy.

Also read:

Venture debt player InnoVen Capital mulls launching AIF in India

India: Xpressbees raises $12m from existing investors

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.